NRS 604A.940 Exercise
of jurisdiction over party to civil action; service of summons to confer
jurisdiction.

_________

_________

GENERAL PROVISIONS

NRS 604A.010Definitions.As
used in this chapter, unless the context otherwise requires, the words and
terms defined in NRS 604A.015 to 604A.125, inclusive, have the meanings ascribed to
them in those sections.

1. “Automated loan machine” means any
machine or other device, regardless of the name given to it or the technology
used, that:

(a) Is automated;

(b) Is designed or intended to allow a customer,
without any additional assistance from another person, to receive or attempt to
receive a deferred deposit loan or high-interest loan through the machine or
other device; and

(c) Is set up, installed, operated or maintained
by or on behalf of the person making the loan or any agent, affiliate or
subsidiary of the person.

2. The term does not include any machine
or other device used directly by a customer to access the Internet unless the
machine or other device is made available to the customer by the person making
the loan or any agent, affiliate or subsidiary of the person.

(a) Make a scheduled payment on a loan on or
before the due date for the payment under the terms of a lawful loan agreement
and any grace period that complies with the provisions of NRS 604A.210 or under the terms of any lawful
extension or repayment plan relating to the loan and any grace period that
complies with the provisions of NRS 604A.210; or

(b) Pay a loan in full on or before:

(1) The expiration of the initial loan
period as set forth in a lawful loan agreement and any grace period that
complies with the provisions of NRS 604A.210; or

(2) The due date of any lawful extension
or repayment plan relating to the loan and any grace period that complies with
the provisions of NRS 604A.210, provided that the
due date of the extension or repayment plan does not violate the provisions of
this chapter.

2. A default occurs on the day immediately
following the date of the customer’s failure to perform as described in
subsection 1.

(b) Written authorization for an electronic
transfer of money for a specified amount from the account of the customer; and

2. The other person:

(a) Provides to the customer an amount of money
that is equal to the face value of the check or the amount specified in the
written authorization for an electronic transfer of money, less any fee charged
for the transaction; and

(b) Agrees, for a specified period, not to cash
the check or execute an electronic transfer of money for the amount specified
in the written authorization.

NRS 604A.055“Deferred deposit loan service” defined.“Deferred deposit loan service” means any
person engaged in the business of making deferred deposit loans for a fee,
service charge or other consideration.

NRS 604A.060“Electronic transfer of money” defined.“Electronic
transfer of money” means any transfer of money, other than a transaction
initiated by a check or other similar instrument, that is initiated through an
electronic terminal, telephone, computer or magnetic tape for the purpose of
ordering, instructing or authorizing a financial institution to debit or credit
an account.

1. “Extension” means any extension or
rollover of a loan beyond the date on which the loan is required to be paid in
full under the original terms of the loan agreement, regardless of the name
given to the extension or rollover.

NRS 604A.0705“High-interest loan service” defined.“High-interest
loan service” means any person engaged in the business of providing
high-interest loans for a fee, service charge or other consideration.

NRS 604A.075“Licensee” defined.“Licensee”
means any person who has been issued one or more licenses to operate a
check-cashing service, deferred deposit loan service, high-interest loan
service or title loan service pursuant to the provisions of this chapter.

NRS 604A.080“Loan” defined.“Loan”
means any deferred deposit loan, high-interest loan or title loan, or any
extension or repayment plan relating to such a loan, made at any location or
through any method, including, without limitation, at a kiosk, through the
Internet, through any telephone, facsimile machine or other telecommunication
device or through any other machine, network, system, device or means.

NRS 604A.085“Refund anticipation loan” defined.“Refund
anticipation loan” means a loan offered or made to a taxpayer by a lender or
through a facilitator based on the taxpayer’s anticipated federal income tax
refund.

NRS 604A.115“Title to a vehicle” or “title” defined.“Title to a vehicle” or “title” means a
certificate of title or ownership issued pursuant to the laws of this State
that identifies the legal owner of a vehicle or any similar document issued
pursuant to the laws of another jurisdiction.

1. As used in this chapter, unless the
context otherwise requires, the following terms have the meanings ascribed to
them in the Truth in Lending Act and Regulation Z:

(a) “Amount financed.”

(b) “Annual percentage rate.”

(c) “Finance charge.”

(d) “Payment schedule.”

(e) “Total of payments.”

2. For the purposes of this chapter,
proper calculation of the amount financed, annual percentage rate and finance
charge for a loan must be made in accordance with the Truth in Lending Act and
Regulation Z.

NRS 604A.200Application of chapter to persons who seek to evade its
provisions.The provisions of this
chapter apply to any person who seeks to evade its application by any device,
subterfuge or pretense, including, without limitation:

1. Calling a loan by any other name;

2. Using any agents, affiliates or
subsidiaries in an attempt to avoid the application of the provisions of this
chapter; or

3. Having any affiliation or other
business arrangement with an entity that is exempt from the provisions of this
chapter pursuant to subsection 1 of NRS 604A.250,
the effect of which is to evade the provisions of this chapter, including,
without limitation, making a loan while purporting to be the agent of such an
exempt entity where the purported agent holds, acquires or maintains a
preponderant economic interest in the revenues generated by the loan.

NRS 604A.210Chapter does not prohibit licensee from offering customer grace
period.The provisions of this
chapter do not prohibit a licensee from offering a customer a grace period on
the repayment of a loan or an extension of a loan, except that the licensee
shall not charge the customer:

1. Any fees for granting such a grace
period; or

2. Any additional fees or additional
interest on the outstanding loan during such a grace period.

NRS 604A.220Uniformity of application and construction; resolution of
conflicts.

1. The provisions of this chapter must be
interpreted so as to effectuate their general purpose to provide for, to the
extent practicable, uniform regulation of the loans and transactions that are
subject to the provisions of this chapter.

2. If there is a conflict between the
provisions of this chapter and the provisions of any other general law regulating
loans and similar transactions, the provisions of this chapter control.

NRS 604A.230Effect of amendment or repeal of chapter on preexisting lawful
contracts.This chapter or any
part thereof may be modified, amended or repealed by the Legislature so as to
effect a cancellation or alteration of any license or right of a licensee under
this chapter, provided that such cancellation or alteration shall not impair or
affect the obligation of any preexisting lawful loan agreement between any
licensee and any customer.

NRS 604A.240Collection of loans made outside State.Any
loan lawfully made outside this State as permitted by the laws of the state in
which the loan was made may be collected or otherwise enforced in this State in
accordance with its terms.

NRS 604A.250Exemptions from chapter.The
provisions of this chapter do not apply to:

1. Except as otherwise provided in NRS 604A.200, a person doing business pursuant to the
authority of any law of this State or of the United States relating to banks,
national banking associations, savings banks, trust companies, savings and loan
associations, credit unions, mortgage brokers, mortgage bankers, thrift
companies or insurance companies, including, without limitation, any affiliate
or subsidiary of such a person regardless of whether the affiliate or
subsidiary is a bank.

2. A person who is primarily engaged in
the retail sale of goods or services who:

(a) As an incident to or independently of a
retail sale or service, from time to time cashes checks for a fee or other
consideration of not more than $2; and

(b) Does not hold himself or herself out as a
check-cashing service.

3. A person while performing any act
authorized by a license issued pursuant to chapter
671 of NRS.

4. A person who holds a nonrestricted
gaming license issued pursuant to chapter 463
of NRS while performing any act in the course of that licensed operation.

5. A person who is exclusively engaged in
a check-cashing service relating to out-of-state checks.

6. A corporation organized pursuant to the
laws of this State that has been continuously and exclusively engaged in a
check-cashing service in this State since July 1, 1973.

1. Except as otherwise provided in
subsection 3, an officer or employee of the Division of Financial Institutions
of the Department of Business and Industry shall not:

(a) Be directly or indirectly interested in or
act on behalf of any licensee;

(b) Receive, directly or indirectly, any payment
from any licensee;

(c) Be indebted to any licensee;

(d) Engage in the negotiation of loans for others
with any licensee; or

(e) Obtain credit or services from a licensee
conditioned upon a fraudulent practice or undue or unfair preference over other
customers.

2. An employee of the Division of
Financial Institutions in the unclassified service of the State shall not
obtain new extensions of credit from a licensee while in office.

3. Any officer or employee of the Division
of Financial Institutions may be indebted to a licensee on the same terms as
are available to the public generally.

4. If an officer or employee of the
Division of Financial Institutions has a service, a preferred consideration, an
interest or a relationship prohibited by this section at the time of his or her
appointment or employment, or obtains it during his or her employment, he or
she shall terminate it within 120 days after the date of his or her appointment
or employment or the discovery of the prohibited act.

1. A person, including, without
limitation, a person licensed pursuant to chapter
675 of NRS, shall not operate a check-cashing service, deferred deposit
loan service, high-interest loan service or title loan service unless the
person is licensed with the Commissioner pursuant to the provisions of this
chapter.

2. A person must have a license regardless
of the location or method that the person uses to operate such a service,
including, without limitation, at a kiosk, through the Internet, through any
telephone, facsimile machine or other telecommunication device or through any
other machine, network, system, device or means, except that the person shall
not operate such a service through any automated loan machine in violation of
the provisions of subsection 3.

3. A person shall not operate a deferred
deposit loan service or high-interest loan service through any automated loan
machine, and the Commissioner shall not issue a license that authorizes the
licensee to conduct business through any automated loan machine.

4. Any person, and any member, officer,
director, agent or employee thereof, who violates or participates in the
violation of any provision of this section is guilty of a misdemeanor.

NRS 604A.402Commissioner required to investigate alleged violations of
chapter.If the Commissioner
receives information from a registered agent pursuant to NRS 77.410 which indicates that a person
may be violating the provisions of this chapter, the Commissioner shall
investigate the person and take any appropriate action pursuant thereto.

1. A licensee shall post in a conspicuous
place in every location at which the licensee conducts business under his or
her license:

(a) A notice that states the fees the licensee
charges for providing check-cashing services, deferred deposit loan services,
high-interest loan services or title loan services.

(b) A notice that states a toll-free telephone
number to the Office of the Commissioner to handle concerns or complaints of
customers.

Ê The
Commissioner shall adopt regulations prescribing the form and size of the
notices required by this subsection.

2. If a licensee offers loans to customers
at a kiosk, through the Internet, through any telephone, facsimile machine or
other telecommunication device or through any other machine, network, system,
device or means, except for an automated loan machine prohibited by NRS 604A.400, the licensee shall, as appropriate to
the location or method for making the loan, post in a conspicuous place where
customers will see it before they enter into a loan, or disclose in an open and
obvious manner to customers before they enter into a loan, a notice that
states:

(a) The types of loans the licensee offers and
the fees he or she charges for making each type of loan; and

(b) A list of the states where the licensee is
licensed or authorized to conduct business from outside this State with
customers located in this State.

3. A licensee who provides check-cashing
services shall give written notice to each customer of the fees he or she
charges for cashing checks. The customer must sign the notice before the
licensee provides the check-cashing service.

1. Except as otherwise provided in this
section, for the purposes of determining whether a loan is a high-interest
loan, when determining whether a lender is charging an annual percentage rate
of more than 40 percent, calculations must be made in accordance with the Truth
in Lending Act and Regulation Z, except that every charge or fee, regardless of
the name given to the charge or fee, payable directly or indirectly by the
customer and imposed directly or indirectly by the lender must be included in
calculating the annual percentage rate, including, without limitation:

(a) Interest;

(b) Application fees, regardless of whether such
fees are charged to all applicants or credit is actually extended;

(c) Fees charged for participation in a credit
plan, whether assessed on an annual, periodic or nonperiodic basis; and

(d) Prepaid finance charges.

2. The following charges and fees must be
excluded from the calculation of the annual percentage rate pursuant to
subsection 1:

(a) Any fees allowed pursuant to NRS 604A.490 or 675.365
for a check not paid upon presentment or an electronic transfer of money that
fails;

3. Calculation of the annual percentage
rate in the manner specified in this section is limited only to the
determination of whether a loan is a high-interest loan and must not be used in
compliance with the disclosure requirements of paragraph (g) of subsection 2 of
NRS 604A.410 or any other provisions of this
chapter requiring disclosure of an annual percentage rate in the making of a
loan.

NRS 604A.408Limitations on original term of deferred deposit and
high-interest loans.

1. Except as otherwise provided in this
chapter, the original term of a deferred deposit loan or high-interest loan
must not exceed 35 days.

2. The original term of a high-interest loan
may be up to 90 days if:

(a) The loan provides for payments in
installments;

(b) The payments are calculated to ratably and
fully amortize the entire amount of principal and interest payable on the loan;

(c) The loan is not subject to any extension; and

(d) The loan does not require a balloon payment
of any kind.

3. Notwithstanding the provisions of NRS 604A.480, a licensee shall not agree to establish
or extend the period for the repayment, renewal, refinancing or consolidation
of an outstanding deferred deposit loan or high-interest loan for a period that
exceeds 90 days after the date of origination of the loan.

1. Before making any loan to a customer, a
licensee shall provide to the customer a written loan agreement which may be
kept by the customer and which must be written in:

(a) English, if the transaction is conducted in
English; or

(b) Spanish, if the transaction is conducted in
Spanish.

2. The loan agreement must include,
without limitation, the following information:

(a) The name and address of the licensee and the
customer;

(b) The nature of the security for the loan, if
any;

(c) The date and amount of the loan, amount
financed, annual percentage rate, finance charge, total of payments, payment
schedule and a description and the amount of every fee charged, regardless of
the name given to the fee and regardless of whether the fee is required to be
included in the finance charge under the Truth in Lending Act and Regulation Z;

(d) A disclosure of the right of the customer to
rescind a loan pursuant to the provisions of this chapter;

(e) A disclosure of the right of the customer to
pay his or her loan in full or in part with no additional charge pursuant to
the provisions of this chapter;

(f) A disclosure stating that, if the customer
defaults on the loan, the licensee must offer a repayment plan to the customer
before the licensee commences any civil action or process of alternative
dispute resolution or, if appropriate for the loan, before the licensee
repossesses a vehicle; and

(g) Any other disclosures required under the
Truth in Lending Act and Regulation Z or under any other applicable federal or
state statute or regulation.

1. If a customer defaults on a loan, the
licensee may collect the debt owed to the licensee only in a professional, fair
and lawful manner. When collecting such a debt, the licensee must act in
accordance with and must not violate sections 803 to 812, inclusive, of the
federal Fair Debt Collection Practices Act, as amended, 15 U.S.C. §§ 1692a to
1692j, inclusive, even if the licensee is not otherwise subject to the provisions
of that Act.

2. If a licensee commences a civil action
against a customer to collect a debt, the court may award:

(a) Court costs;

(b) Costs of service of process, except that the
costs must not exceed the amount of the fees charged by the sheriff or
constable for service of process in the county where the action was brought or,
if the customer was not served in that county, in the county where the customer
was served; and

(c) Reasonable attorney’s fees. In determining
the amount of the attorney’s fees and whether they are reasonable, the court
shall consider the complexity of the case, the amount of the debt and whether
the licensee could have used less costly means to collect the debt.

(a) A licensee intends to commence a civil action
in a Justice Court against a customer to collect a debt; and

(b) The customer resides in the county where the
loan was made,

Ê the licensee
is required to commence the civil action in the Justice Court for the township
where the loan was made unless, after the date of default and before the
licensee commences the civil action, the customer signs an affidavit agreeing
to try the action in another Justice Court having jurisdiction over the subject
matter and the parties. A licensee shall not, directly or indirectly, require,
intimidate, threaten or coerce a customer to sign such an affidavit.

NRS 604A.420Practices regarding customers who are members of military.Notwithstanding any other provision of law:

1. If a customer is a member of the
military, a licensee shall:

(a) Honor the terms of any repayment plan between
the licensee and customer, including, without limitation, any repayment plan
negotiated through military counselors or third-party credit counselors.

(b)Honor
any proclamation by a base commander that a certain branch location of the
licensee is off-limits to members of the military and their spouses.

2. If a customer is a member of the
military, a licensee shall not:

(a) Garnish or threaten to garnish any wages or
salary of the customer or the customer’s spouse; or

(b) Contact or threaten to contact the military
chain of command of a customer in an effort to collect the loan.

3. If a customer is a member of the
military and is deployed to a combat or combat supporting position, a licensee
shall not engage in any collection activity against the customer or the
customer’s spouse.

4. As used in this section, “military”
means the Armed Forces of the United States, a reserve component thereof or the
National Guard.

1. A licensee shall not make more than one
deferred deposit loan, single-advance, single-payment loan or high-interest loan
to the same customer at one time or before any outstanding balance is paid in
full on an existing loan made by that licensee to the customer unless:

(a) The customer is seeking multiple loans that
do not exceed the limits set forth in NRS 604A.425;

(b) The licensee charges the same or a lower fee
or service charge per $100 if it is a deferred deposit loan or single-advance,
single-payment loan, or the same or a lower annual percentage rate of interest
if it is a high-interest loan that is not a single-advance, single-payment
loan, for any additional loans as the licensee charged for the initial loan;

(c) Except for that part of the finance charge
which consists of interest only, the licensee does not impose any other charge
or fee to initiate any additional loans, except that a licensee who makes
deferred deposit loans or high-interest loans in accordance with the provisions
of subsection 2 of NRS 604A.480 may charge a
reasonable fee for preparing documents in an amount that does not exceed $50;
and

(d) If the additional loans are deferred deposit
loans and the customer provides one or more additional checks that are not paid
upon presentment or one or more electronic transfers of money fail, the
licensee does not charge any fees to the customer pursuant to NRS 604A.490, except for the fees allowed pursuant to
that section for the first check that is not paid upon presentment or
electronic transfer of money that failed.

2. As used in this section,
“single-advance, single-payment loan” means a transaction in which, pursuant to
a loan agreement, a customer is given a single advance equal to the amount
financed with payment in full due within 35 days after the date of the transaction.

NRS 604A.435Prohibited acts by licensee: Accepting certain collateral or
other types of security; failing to make certain disclosures; taking incomplete
instruments; requiring the purchase of insurance or other goods or services;
failing to comply with payment plan; charging fee to cash certain checks.A licensee shall not:

1. Accept:

(a) Collateral as security for a loan, except
that a title to a vehicle may be accepted as security for a title loan.

(b) An assignment of wages, salary, commissions or
other compensation for services, whether earned or to be earned, as security
for a loan.

(c) A check as security for a high-interest loan
or title loan.

(d) More than one check or written authorization
for an electronic transfer of money for each deferred deposit loan.

(e) A check or written authorization for an
electronic transfer of money for any deferred deposit loan in an amount which
exceeds the total of payments set forth in the disclosure statement required by
the Truth in Lending Act and Regulation Z that is provided to the customer.

2. Take any note or promise to pay which
does not disclose the date and amount of the loan, amount financed, annual
percentage rate, finance charge, total of payments, payment schedule and a
description and the amount of every fee charged, regardless of the name given
to the fee and regardless of whether the fee is required to be included in the
finance charge under the Truth in Lending Act and Regulation Z.

3. Take any instrument, including a check
or written authorization for an electronic transfer of money, in which blanks
are left to be filled in after the loan is made.

4. Make any transaction contingent on the
purchase of insurance or any other goods or services or sell any insurance to
the customer with the loan.

5. Fail to comply with a payment plan
which is negotiated and agreed to by the licensee and customer.

6. Charge any fee to cash a check
representing the proceeds of a loan made by the licensee or any agent,
affiliate or subsidiary of the licensee.

1. Use or threaten to use the criminal
process in this State or any other state, or any civil process not available to
creditors generally, to collect on a loan made to a customer.

2. Commence a civil action or any process
of alternative dispute resolution or repossess a vehicle before the customer
defaults under the original term of a loan agreement or before the customer
defaults under any repayment plan, extension or grace period negotiated and
agreed to by the licensee and customer, unless otherwise authorized pursuant to
this chapter.

3. Take any confession of judgment or any
power of attorney running to the licensee or to any third person to confess
judgment or to appear for the customer in a judicial proceeding.

4. Include in any written agreement:

(a) A promise by the customer to hold the
licensee harmless;

(b) A confession of judgment by the customer;

(c) An assignment or order for the payment of
wages or other compensation due the customer; or

(d) A waiver of any claim or defense arising out
of the loan agreement or a waiver of any provision of this chapter. The
provisions of this paragraph do not apply to the extent preempted by federal
law.

5. Engage in any deceptive trade practice,
as defined in chapter 598 of NRS, including,
without limitation, making a false representation.

6. Advertise or permit to be advertised in
any manner any false, misleading or deceptive statement or representation with
regard to the rates, terms or conditions for loans.

7. Use or attempt to use any agent,
affiliate or subsidiary to avoid the requirements or prohibitions of this
chapter.

NRS 604A.442Violation of federal law constitutes violation of chapter.Notwithstanding any other provision of law, a
violation of any provision of section 670 of the John Warner National Defense
Authorization Act for Fiscal Year 2007, Public Law 109-364, or any regulation
adopted pursuant thereto shall be deemed to be a violation of this chapter.

NRS 604A.445Title loans: Restrictions on duration of loan and periods of
extension.Notwithstanding any
other provision of this chapter to the contrary:

1. The original term of a title loan must
not exceed 30 days.

2. The title loan may be extended for not
more than six additional periods of extension, with each such period not to
exceed 30 days, if:

(a) Any interest or charges accrued during the
original term of the title loan or any period of extension of the title loan
are not capitalized or added to the principal amount of the title loan during
any subsequent period of extension;

(b) The annual percentage rate charged on the
title loan during any period of extension is not more than the annual
percentage rate charged on the title loan during the original term; and

(c) No additional origination fees, set-up fees,
collection fees, transaction fees, negotiation fees, handling fees, processing
fees, late fees, default fees or any other fees, regardless of the name given
to the fees, are charged in connection with any extension of the title loan.

3. The original term of a title loan may
be up to 210 days if:

(a) The loan provides for payments in
installments;

(b) The payments are calculated to ratably and
fully amortize the entire amount of principal and interest payable on the loan;

1. Except where in conflict with the
provisions of this section, the provisions of chapter
104 of NRS apply to any title loan between a licensee and a customer.

2. Except as otherwise provided in this
section, if a customer defaults on a title loan, or on any extension or
repayment plan relating to the title loan, the sole remedy of the licensee who
made the title loan is to seek repossession and sale of the vehicle which the
customer used to secure the title loan. The licensee may not pursue the
customer personally for:

(a) Payment of the loan, unless the licensee
proves the customer prevented the repossession and sale of the vehicle by any
means, including, without limitation, hiding the vehicle; or

(b) Any deficiency after repossession and sale of
the vehicle which the customer used to secure the title loan, unless the
licensee proves the customer damaged or otherwise committed or permitted waste
on the vehicle. For the purposes of this paragraph, it shall not be deemed
waste for the customer to continue to use the vehicle in the same manner it was
used before the customer entered into the title loan.

3. If a vehicle is repossessed pursuant to
this section:

(a) By the licensee or his or her employees, the
licensee shall make reasonably available to the customer any personal property
in or upon the vehicle; or

(b) By a third party acting on behalf of the
licensee, the licensee shall instruct the third party to make reasonably
available to the customer any personal property in or upon the vehicle.

4. If a customer uses fraud to secure a
title loan or if the customer wrongfully transfers any interest in the vehicle
to a third party before the title loan is repaid, the licensee may bring a
civil action against the customer for any or all of the following relief:

(a) The amount of the loan obligation, including,
without limitation, the aggregate amount of the interest, charges and fees
negotiated and agreed to by the licensee and customer as permitted under this
chapter, less any prior payments made by the customer;

(b) Reasonable attorney’s fees and costs; and

(c) Any other legal or equitable relief that the
court deems appropriate.

5. As used in this section, “fraud” means
an intentional misrepresentation, deception or concealment of a material fact
known to the customer with the intent to deprive the licensee of his or her
rights or property or to otherwise injure the licensee. The term includes,
without limitation, giving to a licensee as security for a title loan the title
to a vehicle which does not belong to the customer.

1. A customer may rescind a loan on or
before the close of business on the next day of business at the location where
the loan was initiated. To rescind the loan, the customer must deliver to the
licensee:

(a) A sum of money equal to the face value of the
loan, less any fee charged to the customer to initiate the loan; or

(b) The original check, if any, which the
licensee gave to the customer pursuant to the loan. Upon receipt of the
original check, the licensee shall refund any fee charged to the customer to
initiate the loan.

2. If a customer rescinds a loan pursuant
to this section, the licensee:

(a) Shall not charge the customer any fee for
rescinding the loan; and

(b) Upon receipt of the sum of money or check
pursuant to subsection 1, shall give to the customer a receipt showing the
account paid in full and:

(1) If the customer gave to the licensee a
check or a written authorization for an electronic transfer of money to
initiate a deferred deposit loan, the check or written authorization stamped
“void”;

(2) If the customer gave to the licensee a
promissory note to initiate a high-interest loan, a copy of the promissory note
stamped “void” or the receipt stamped “paid in full”; or

(3) If the customer gave to the licensee a
title to a vehicle to initiate the title loan, the title.

1. A customer may pay a loan, or any
extension thereof, in full at any time, without an additional charge or fee,
before the date the customer’s final payment on the loan, or any extension
thereof, is due.

2. If a customer pays the loan in full,
including all interest, charges and fees negotiated and agreed to by the
licensee and customer as permitted under this chapter, the licensee shall:

(a) Give to the customer:

(1) If the customer gave to the licensee a
check or a written authorization for an electronic transfer of money to
initiate a deferred deposit loan, the check or the written authorization
stamped “void”;

(2) If the customer gave to the licensee a
promissory note to initiate a high-interest loan, the promissory note stamped
“void” or a receipt stamped “paid in full”; or

(3) If the customer gave to the licensee a
title to a vehicle to initiate a title loan, the title; and

(b) Give to the customer a receipt with the
following information:

(1) The name and address of the licensee;

(2) The identification number assigned to
the loan agreement or other information that identifies the loan;

(3) The date of the payment;

(4) The amount paid;

(5) An itemization of interest, charges
and fees;

(6) A statement that the loan is paid in
full; and

(7) If more than one loan made by the
licensee to the customer was outstanding at the time the payment was made, a
statement indicating to which loan the payment was applied.

1. Before a licensee attempts to collect
the outstanding balance on a loan in default by commencing any civil action or
process of alternative dispute resolution or repossessing a vehicle, the
licensee shall offer the customer an opportunity to enter into a repayment
plan. The licensee:

(a) Is required to make the offer available to
the customer for a period of at least 30 days after the date of default; and

(b) Is not required to make such an offer more
than once for each loan.

2. If the licensee intends to commence any
civil action or process of alternative dispute resolution or repossess a
vehicle in an effort to collect a defaulted loan, the licensee shall deliver to
the customer, not later than 15 days after the date of default, or not later
than 5 days after a check is not paid upon presentment or an electronic
transfer of money fails, whichever is later, written notice of the opportunity
to enter into a repayment plan. The written notice must:

(a) Be in English, if the initial transaction was
conducted in English, or in Spanish, if the initial transaction was conducted
in Spanish;

(b) State the date by which the customer must act
to enter into a repayment plan;

(c) Explain the procedures the customer must
follow to enter into a repayment plan;

(d) If the licensee requires the customer to make
an initial payment to enter into a repayment plan, explain the requirement and
state the amount of the initial payment and the date the initial payment must
be made;

(e) State that the customer has the opportunity
to enter into a repayment plan with a term of at least 90 days after the date
of default; and

(f) Include the following amounts:

(1) The total of payments or the remaining
balance on the original loan;

(2) Any payments made on the loan;

(3) Any charges added to the loan amount
allowed pursuant to the provisions of this chapter; and

(4) The total amount due if the customer
enters into a repayment plan.

3. Under the terms of any repayment plan
pursuant to this section:

(a) The customer must enter into the repayment
plan not later than 30 days after the date of default, unless the licensee
allows a longer period;

(b) The licensee must allow the period for
repayment to extend at least 90 days after the date of default, unless the
customer agrees to a shorter term;

(c) The licensee may require the customer to make
an initial payment of not more than 20 percent of the total amount due under
the terms of the repayment plan;

(d) For a deferred deposit loan:

(1) The licensee may require a customer to
provide, as security, one or more checks or written authorizations for an
electronic transfer of money which equal the total amount due under the terms
of the repayment plan;

(2) The licensee shall, if the customer
makes a payment in the amount of a check or written authorization taken as
security for that payment, return to the customer the check or written
authorization stamped “void” or destroy the check or written authorization; and

(3) The licensee shall not charge any fee
to the customer pursuant to NRS 604A.490 for a
check which is provided as security during the repayment plan and which is not
paid upon presentment if, in connection with that loan, the licensee has
previously charged at least one such fee.

4. If the licensee and customer enter into
a repayment plan pursuant to this section, the licensee shall honor the terms
of the repayment plan, and the licensee shall not:

(a) Except as otherwise provided by this chapter,
charge any other amount to a customer, including, without limitation, any
amount or charge payable directly or indirectly by the customer and imposed
directly or indirectly by the licensee as an incident to or as a condition of
entering into a repayment plan. Such an amount includes, without limitation:

(1) Any interest, regardless of the name
given to the interest, other than the interest charged pursuant to the original
loan agreement at a rate which does not exceed the annual percentage rate
charged during the term of the original loan agreement; or

(2) Any origination fees, set-up fees,
collection fees, transaction fees, negotiation fees, handling fees, processing
fees, late fees, default fees or any other fees, regardless of the name given
to the fee;

(b) Except as otherwise provided in this section,
accept any additional security or collateral from the customer to enter into
the repayment plan;

(c) Sell to the customer any insurance or require
the customer to purchase insurance or any other goods or services to enter into
the repayment plan;

(d) Make any other loan to the customer, unless
the customer is seeking multiple loans that do not exceed the limit set forth
in NRS 604A.425;

(e) During the term of the repayment plan,
attempt to collect the outstanding balance by commencing any civil action or
process of alternative dispute resolution or by repossessing a vehicle, unless
the customer defaults on the repayment plan; or

(f) Attempt to collect an amount that is greater
than the amount owed under the terms of the repayment plan.

5. If the licensee and customer enter into
a repayment plan pursuant to this section, the licensee shall:

(a) Prepare a written agreement establishing the
repayment plan; and

(b) Give the customer a copy of the written
agreement. The written agreement must:

(1) Be signed by the licensee and
customer; and

(2) Contain all of the terms of the
repayment plan, including, without limitation, the total amount due under the
terms of the repayment plan.

6. Each time a customer makes a payment
pursuant to a repayment plan, the licensee shall give to the customer a receipt
with the following information:

(a) The name and address of the licensee;

(b) The identification number assigned to the
loan agreement or other information that identifies the loan;

(c) The date of the payment;

(d) The amount paid;

(e) The balance due on the loan or, when the
customer makes the final payment, a statement that the loan is paid in full;
and

(f) If more than one loan made by the licensee to
the customer was outstanding at the time the payment was made, a statement
indicating to which loan the payment was applied.

7. If the customer defaults on the
repayment plan, the licensee may, to collect the outstanding balance, commence
any civil action or process of alternative dispute resolution or repossess a
vehicle as otherwise authorized pursuant to this chapter.

NRS 604A.480Limitations on using proceeds of new loan to pay balance of
outstanding loan; exceptions.

1. Except as otherwise provided in
subsection 2, if a customer agrees in writing to establish or extend the period
for the repayment, renewal, refinancing or consolidation of an outstanding loan
by using the proceeds of a new deferred deposit loan or high-interest loan to
pay the balance of the outstanding loan, the licensee shall not establish or
extend the period beyond 60 days after the expiration of the initial loan
period. The licensee shall not add any unpaid interest or other charges accrued
during the original term of the outstanding loan or any extension of the
outstanding loan to the principal amount of the new deferred deposit loan or
high-interest loan.

2. This section does not apply to a new deferred
deposit loan or high-interest loan if the licensee:

(a) Makes the new deferred deposit loan or
high-interest loan to a customer pursuant to a loan agreement which, under its
original terms:

(1) Charges an annual percentage rate of
less than 200 percent;

(2) Requires the customer to make a
payment on the loan at least once every 30 days;

(3) Requires the loan to be paid in full
in not less than 150 days; and

(4) Provides that interest does not accrue
on the loan at the annual percentage rate set forth in the loan agreement after
the date of maturity of the loan;

(b) Performs a credit check of the customer with
a major consumer reporting agency before making the loan;

(c) Reports information relating to the loan
experience of the customer to a major consumer reporting agency;

(d) Gives the customer the right to rescind the
new deferred deposit loan or high-interest loan within 5 days after the loan is
made without charging the customer any fee for rescinding the loan;

(e) Participates in good faith with a counseling
agency that is:

(1) Accredited by the Council on
Accreditation of Services for Families and Children, Inc., or its successor
organization; and

(2) A member of the National Foundation
for Credit Counseling, or its successor organization; and

(f) Does not commence any civil action or process
of alternative dispute resolution on a defaulted loan or any extension or
repayment plan thereof.

NRS 604A.485Limitations on amounts licensee may collect after default.

1. If a customer defaults on a loan or on
any extension or repayment plan relating to the loan, whichever is later, the
licensee may collect only the following amounts from the customer, less all
payments made before and after default:

(a) The unpaid principal amount of the loan.

(b) The unpaid interest, if any, accrued before
the default at the annual percentage rate set forth in the disclosure statement
required by the Truth in Lending Act and Regulation Z that is provided to the
customer. If there is an extension, in writing and signed by the customer,
relating to the loan, the licensee may charge and collect interest pursuant to
this paragraph for a period not to exceed 60 days after the expiration of the initial
loan period, unless otherwise allowed by NRS 604A.480.

(c) The interest accrued after the expiration of
the initial loan period or after any extension or repayment plan that is allowed
pursuant to this chapter, whichever is later, at an annual percentage rate not
to exceed the prime rate at the largest bank in Nevada, as ascertained by the
Commissioner, on January 1 or July 1, as the case may be, immediately preceding
the expiration of the initial loan period, plus 10 percent. The licensee may
charge and collect interest pursuant to this paragraph for a period not to
exceed 90 days. After that period, the licensee shall not charge or collect any
interest on the loan.

(d) Any fees allowed pursuant to NRS 604A.490 for a check that is not paid upon
presentment or an electronic transfer of money that fails because the account
of the customer contains insufficient funds or has been closed.

Ê The sum of
all amounts collected pursuant to paragraphs (b), (c) and (d) must not exceed
the principal amount of the loan.

2. Except for the interest and fees
permitted pursuant to subsection 1 and any other charges expressly permitted
pursuant to NRS 604A.430, 604A.445,
604A.475 and 604A.487,
the licensee shall not charge any other amount to a customer, including,
without limitation, any amount or charge payable directly or indirectly by the
customer and imposed directly or indirectly by the licensee as an incident to
or as a condition of the extension of the period for the payment of the loan or
the extension of credit. Such prohibited amounts include, without limitation:

(a) Any interest, other than the interest charged
pursuant to subsection 1, regardless of the name given to the interest; or

(b) Any origination fees, set-up fees, collection
fees, transaction fees, negotiation fees, handling fees, processing fees, late
fees, default fees or any other fees, regardless of the name given to the fee.

NRS 604A.487Limitations on fees licensees may charge after default on
installment payments.In addition
to the amounts authorized to be collected pursuant to NRS
604A.485, a licensee who makes a high-interest loan in accordance with the
provisions of subsection 2 of NRS 604A.480 may
charge a fee of not more than $15, payable on a one-time basis, for any
installment payment that remains unpaid 10 days or more after the date of
default.

NRS 604A.490Limitations on fees licensee may collect for check not paid upon
presentment or failure of electronic transfer of money; standards for civil
liability and criminal prosecution.

1. A licensee may collect a fee of not
more than $25 if a check is not paid upon presentment or an electronic transfer
of money fails because the account of the customer contains insufficient funds
or has been closed.

2. If the account of the customer contains
insufficient funds, the licensee may collect only two fees of $25 each,
regardless of the number of times the check is presented for payment or the
electronic transfer of money is attempted.

3. If the account of the customer has been
closed, the licensee may collect only one fee of $25, regardless of the number
of times the check is presented or the electronic transfer of money is
attempted for payment.

4. A customer is not liable for damages
pursuant to NRS 41.620 or to criminal
prosecution for a violation of chapter 205 of
NRS unless the customer acted with criminal intent.

NRS 604A.495Receipt required for each payment by customer; contents.In addition to any other provision in this
chapter, each time a customer makes a payment to a licensee, the licensee shall
give to the customer a receipt with the following information:

1. The name and address of the licensee;

2. The identification number assigned to
the loan agreement or other information that identifies the loan;

3. The date of the payment;

4. The amount paid;

5. The balance due on the loan or, when
the customer makes a final payment, a statement that the loan is paid in full;
and

6. If more than one loan made by the
licensee to the customer was outstanding at the time the payment was made, a
statement indicating to which loan the payment was applied.

NRS 604A.500Requirements regarding person acting as agent or assisting in
making loan.

1. A person shall not act as an agent for
or assist a licensee in the making of a loan unless the licensee complies with
all applicable federal and state laws, regulations and guidelines.

2. The provisions of this section do not
apply to the agent or assistant to a state or federally chartered bank, thrift
company, savings and loan association or industrial loan company if the state
or federally chartered bank, thrift company, savings and loan association or
industrial loan company:

(a) Initially advances the loan proceeds to the
customer; and

(b) Does not sell, assign or transfer a preponderant
economic interest in the loan to the agent or assistant or an affiliate or
subsidiary of the state or federally chartered bank, thrift company, savings
and loan association or industrial loan company, unless selling, assigning or
transferring a preponderant economic interest is expressly permitted by the
primary regulator of the state or federally chartered bank, thrift company,
savings and loan association or industrial loan company.

3. If a licensee acts as an agent for or
assists a state or federally chartered bank, thrift company, savings and loan
association or industrial loan company in the making of a loan and the licensee
can show that the standards set forth in subsection 2 are satisfied, the
licensee must comply with all other provisions in this chapter to the extent
they are not preempted by other state or federal law.

1. An application for a license pursuant
to the provisions of this chapter must be made in writing, under oath and on a
form prescribed by the Commissioner. The application must include:

(a) If the applicant is a natural person, the
name and address of the applicant.

(b) If the applicant is a business entity, the
name and address of each:

(1) Partner;

(2) Officer;

(3) Director;

(4) Manager or member who acts in a
managerial capacity; and

(5) Registered agent,

Ê of the
business entity.

(c) Such other information, as the Commissioner
determines necessary, concerning the financial responsibility, background,
experience and activities of the applicant and its:

(1) Partners;

(2) Officers;

(3) Directors; and

(4) Managers or members who act in a
managerial capacity.

(d) The address of each location at which the
applicant proposes to do business under the license, including, without
limitation, each location where the applicant will operate at a kiosk, through
the Internet, through any telephone, facsimile machine or other
telecommunication device or through any other machine, network, system, device
or means, except that the applicant shall not propose to do business through
any automated loan machine prohibited by NRS 604A.400.

(e) If the applicant is or intends to be licensed
to provide more than one type of service pursuant to the provisions of this
chapter, a statement of that intent and which services the applicant provides
or intends to provide.

2. Each application for a license must be
accompanied by:

(a) A nonrefundable application fee;

(b) Such additional expenses incurred in the
process of investigation as the Commissioner deems necessary; and

(c) A fee of not less than $100 or more than
$500, prorated on the basis of the licensing year.

Ê All money
received by the Commissioner pursuant to this subsection must be placed in the
Investigative Account for Financial Institutions created by NRS 232.545.

3. The Commissioner shall adopt
regulations establishing the amount of the fees required pursuant to this
section.

4. The Commissioner shall consider an
application to be withdrawn if the Commissioner has not received all
information and fees required to complete the application within 6 months after
the date the application is first submitted to the Commissioner or within such
later period as the Commissioner determines in accordance with any existing
policies of joint regulatory partners. If an application is deemed to be
withdrawn pursuant to this subsection or if an applicant otherwise withdraws an
application, the Commissioner may not issue a license to the applicant unless
the applicant submits a new application and pays any required fees.

NRS 604A.605Additional materials to be submitted with application; grounds
for denial of license.

1. In addition to any other requirements
set forth in this chapter, each applicant must submit:

(a) Proof satisfactory to the Commissioner that
the applicant:

(1) Has a good reputation for honesty,
trustworthiness and integrity and is competent to transact the business for
which the applicant seeks to be licensed in a manner which protects the
interests of the general public.

(2) Has not made a false statement of
material fact on the application for the license.

(3) Has not committed any of the acts
specified in subsection 2.

(4) Has not had a license issued pursuant
to this chapter suspended or revoked within the 10 years immediately preceding
the date of the application.

(5) Has not been convicted of, or entered
a plea of nolo contendere to, a felony or any crime involving fraud,
misrepresentation or moral turpitude.

(6) If the applicant is a natural person:

(I) Is at least 21 years of age; and

(II) Is a citizen of the United
States or lawfully entitled to remain and work in the United States.

(b) A complete set of his or her fingerprints and
written permission authorizing the Division of Financial Institutions of the
Department of Business and Industry to forward the fingerprints to the Central
Repository for Nevada Records of Criminal History for submission to the Federal
Bureau of Investigation for its report.

2. In addition to any other lawful
reasons, the Commissioner may refuse to issue a license to an applicant if the
applicant:

(a) Has committed or participated in any act
which, if committed or done by a holder of a license, would be grounds for the
suspension or revocation of the license.

(b) Has previously been refused a license
pursuant to this chapter or has had such a license suspended or revoked.

(c) Has participated in any act which was a basis
for the refusal or revocation of a license pursuant to this chapter.

(d) Has falsified any of the information
submitted to the Commissioner in support of the application for the license.

1. Except as otherwise provided in NRS 604A.615, each application for a license pursuant
to the provisions of this chapter must be accompanied by a surety bond payable
to the State of Nevada in the amount of $50,000 plus an additional $5,000 for
each branch location at which the applicant proposes to do business under the
license. Thereafter, each licensee shall maintain the surety bond so that the
amount of the surety bond is $50,000 plus an additional $5,000 for each branch
location at which the licensee does business under the license. The surety bond
required by this section is for the use and benefit of any customer receiving
the services of the licensee at any location at which the licensee does
business under the license.

2. Each bond must be in a form satisfactory
to the Commissioner, issued by a bonding company authorized to do business in
this State and must secure the faithful performance of the obligations of the
licensee respecting the provision of the services.

3. A licensee shall, within 10 days after
the commencement of any action or notice of entry of any judgment against the
licensee by any creditor or claimant arising out of business regulated by this
chapter give notice thereof to the Commissioner by certified mail with details
sufficient to identify the action or judgment. The surety shall, within 10 days
after it pays any claim or judgment to a creditor or claimant, give notice
thereof to the Commissioner by certified mail with details sufficient to
identify the creditor or claimant and the claim or judgment so paid.

4. Whenever the principal sum of any bond
is reduced by recoveries or payments thereon, the licensee shall furnish:

(a) A new or additional bond so that the total or
aggregate principal sum of the bonds equals the sum required pursuant to
subsection 1; or

(b) An endorsement, duly executed by the surety,
reinstating the bond to the required principal sum.

5. The liability of the surety on a bond
to a creditor or claimant is not affected by any misrepresentation, breach of
warranty, failure to pay a premium or other act or omission of the licensee, or
by any insolvency or bankruptcy of the licensee.

6. The liability of the surety continues
as to all transactions entered into in good faith by the creditors and
claimants with the agents of the licensee within 30 days after:

(a) The death of the licensee or the dissolution
or liquidation of his or her business; or

(b) The termination of the bond,

Ê whichever
event occurs first.

7. A licensee or his or her surety shall
not cancel or alter a bond except after notice to the Commissioner by certified
mail. The cancellation or alteration is not effective until 10 days after
receipt of the notice by the Commissioner. A cancellation or alteration does
not affect any liability incurred or accrued on the bond before the expiration
of the 30-day period designated in subsection 6.

1. In lieu of any surety bond, or any
portion of the principal sum thereof as required pursuant to the provisions of
this chapter, a licensee may deposit with the State Treasurer or with any bank,
credit union or trust company authorized to do business in this State as the
licensee may select, with the approval of the Commissioner:

(a) Interest-bearing stocks;

(b) Bills, bonds, notes, debentures or other
obligations of the United States or any agency or instrumentality thereof, or
guaranteed by the United States; or

(c) Any obligation of this State or any city,
county, town, township, school district or other instrumentality of this State
or guaranteed by this State,

Ê in an
aggregate amount, based upon principal amount or market value, whichever is
lower, of not less than the amount of any required surety bond or portion
thereof.

2. The securities must be held to secure
the same obligation as would any surety bond, but the depositor may receive any
interest or dividends and, with the approval of the Commissioner, substitute
other suitable securities for those deposited.

NRS 604A.620Application for license for office or other place of business
located outside State.

1. A person may apply for a license for an
office or other place of business located outside this State from which the
applicant will conduct business in this State if the applicant or a subsidiary
or affiliate of the applicant has a license issued pursuant to this chapter for
an office or other place of business located in this State and if the applicant
submits with the application for a license a statement signed by the applicant
which states that the applicant agrees to:

(a) Make available at a location within this
State the books, accounts, papers, records and files of the office or place of
business located outside this State to the Commissioner or a representative of
the Commissioner; or

(b) Pay the reasonable expenses for travel, meals
and lodging of the Commissioner or a representative of the Commissioner
incurred during any investigation or examination made at the office or place of
business located outside this State.

Ê The person
must be allowed to choose between the provisions of paragraph (a) or (b) in
complying with the provisions of this subsection.

2. This section applies, without
limitation, to any office or other place of business located outside this State
from which the applicant will conduct business in this State at a kiosk,
through the Internet, through any telephone, facsimile machine or other
telecommunication device or through any other machine, network, system, device
or means, except that the applicant shall not conduct business in this State
through any automated loan machine prohibited by NRS
604A.400.

1. Upon the filing of the application and
the payment of the fees required pursuant to NRS
604A.600, the Commissioner shall investigate the facts concerning the
application and the requirements provided for in NRS
604A.605 and 604A.635.

2. The Commissioner may hold a hearing on
the application at a time not less than 30 days after the date the application
was filed or not more than 60 days after that date. The hearing must be held in
the Office of the Commissioner or such other place as the Commissioner may
designate. Notice in writing of the hearing must be sent to the applicant and
to any licensee to which a notice of the application has been given and to such
other persons as the Commissioner may see fit, at least 10 days before the date
set for the hearing.

3. The Commissioner shall make his or her
order granting or denying the application within 10 days after the date of the
closing of the hearing, unless the period is extended by written agreement
between the applicant and the Commissioner.

NRS 604A.635Issuance of license; display of license; issuance of additional
licenses for branch locations; contents of license; license not transferable or
assignable.

1. The Commissioner shall enter an order
granting an application if he or she finds that:

(a) The financial responsibility, experience,
character and general fitness of the applicant are such as to command the
confidence of the public and to warrant belief that the business will be
operated lawfully, honestly, fairly and efficiently; and

(b) The applicant has satisfied the requirements
set forth in NRS 604A.605.

2. If the Commissioner grants an
application, the Commissioner shall:

(a) File his or her findings of fact together
with the transcript of any hearing held pursuant to the provisions of this
chapter; and

(b) Issue to the licensee a license in such form
and size as is prescribed by the Commissioner for each location at which the licensee
proposes to do business.

3. Each licensee shall prominently display
his or her license at the location where he or she does business. The
Commissioner may issue additional licenses to the same licensee for each branch
location at which the licensee is authorized to operate under the license,
including, without limitation, each branch location where the licensee is
authorized to operate at a kiosk, through the Internet, through any telephone,
facsimile machine or other telecommunication device or through any other
machine, network, system, device or means, except that the Commissioner shall
not issue any license that would authorize the licensee to operate through any
automated loan machine prohibited by NRS 604A.400.
Nothing in this subsection requires a license for any place of business devoted
to accounting, recordkeeping or administrative purposes only.

4. Each license must:

(a) State the address at which the business is to
be conducted; and

(b) State fully:

(1) The name and address of the licensee;

(2) If the licensee is a copartnership or
association, the names of its members; and

(3) If the licensee is a corporation, the
date and place of its incorporation.

1. A license issued pursuant to the
provisions of this chapter expires annually on the anniversary of the issuance
of the license. A licensee must renew the license on or before the date on
which the license expires by paying:

(a) A renewal fee of not more than $500; and

(b) An additional fee of not more than $100 for
each branch location at which the licensee is authorized to operate under the
license.

2. A licensee who fails to renew his or
her license within the time required by this section is not licensed pursuant
to the provisions of this chapter.

3. The Commissioner may reinstate an
expired license upon receipt of the renewal fee and a fee for reinstatement.

4. The Commissioner shall adopt
regulations establishing the amount of the fees required pursuant to this
section.

NRS 604A.645Change of control of licensee: Notice; application to
Commissioner.

1. A licensee shall immediately notify the
Commissioner of any change of control of the licensee.

2. A person who acquires stock,
partnership or member interests resulting in a change of control of the
licensee shall apply to the Commissioner for approval of the transfer. The
application must contain information which shows that the requirements for
obtaining a license pursuant to the provisions of this chapter will be
satisfied after the change of control. If the Commissioner determines that
those requirements will not be satisfied, he or she may deny the application
and forbid the applicant from participating in the business of the licensee.

3. As used in this section, “change of
control” means:

(a) A transfer of voting stock, partnership or
member interests which results in giving a person, directly or indirectly, the
power to direct the management and policy of a licensee; or

(b) A transfer of at least 25 percent of the
outstanding voting stock, partnership or member interests of the licensee.

NRS 604A.650Licensee must conduct business in accordance with license;
approval of business name; prohibition against using misleading or confusing
business name or printed forms.

1. A licensee shall not conduct the
business of making loans under any name, at any place or by any method,
including, without limitation, at a kiosk, through the Internet, through any telephone,
facsimile machine or other telecommunication device or through any other
machine, network, system, device or means, except as permitted in the license
or branch license issued to the licensee.

2. A licensee must obtain the approval of
the Commissioner before using or changing a business name.

3. A licensee shall not:

(a) Use any business name which is identical or
similar to a business name used by another licensee under this chapter or which
may mislead or confuse the public.

NRS 604A.655Restrictions on location where licensee may conduct business;
requirements to conduct business at same location as mortgage broker, mortgage
banker or pawnbroker.

1. Except as otherwise provided in this
section, a licensee may not conduct the business of making loans within any
office, suite, room or place of business in which any other lending business is
solicited or engaged in, except an insurance agency or notary public, or in
association or conjunction with any other business, unless authority to do so
is given by the Commissioner.

2. A licensee may conduct the business of
making loans in the same office or place of business as:

(a) A mortgage broker if:

(1) The licensee and the mortgage broker:

(I) Maintain separate accounts,
books and records;

(II) Are subsidiaries of the same
parent corporation; and

(III) Maintain separate licenses;
and

(2) The mortgage broker is licensed by
this State pursuant to chapter 645B of NRS
and does not receive money to acquire or repay loans or maintain trust accounts
as provided by NRS 645B.175.

(b) A mortgage banker if:

(1) The licensee and the mortgage banker:

(I) Maintain separate accounts,
books and records;

(II) Are subsidiaries of the same
parent corporation; and

(III) Maintain separate licenses;
and

(2) The mortgage banker is licensed by
this State pursuant to chapter 645E of NRS
and, if the mortgage banker is also licensed as a mortgage broker pursuant to chapter 645B of NRS, does not receive money to
acquire or repay loans or maintain trust accounts as provided by NRS 645B.175.

3. If a pawnbroker is licensed to operate
a check-cashing service, deferred deposit loan service, high-interest loan
service or title loan service, the pawnbroker may operate that service at the
same office or place of business from which he or she conducts business as a
pawnbroker pursuant to chapter 646 of NRS.

1. A licensee who wishes to change the
address of an office or other place of business for which he or she has a
license pursuant to the provisions of this chapter must, at least 10 days
before changing the address, give written notice of the proposed change to the
Commissioner.

2. Upon receipt of the proposed change of
address pursuant to subsection 1, the Commissioner shall provide written
approval of the change and the date of the approval.

3. If a licensee fails to provide notice
as required pursuant to subsection 1, the Commissioner may impose a fine in an
amount not to exceed $500.

4. This section applies, without
limitation, to any office or other place of business at which the licensee
intends to operate a kiosk, through the Internet, through any telephone,
facsimile machine or other telecommunication device or through any other
machine, network, system, device or means, except that the licensee shall not
operate any automated loan machine prohibited by NRS
604A.400.

1. Each licensee shall keep and use in his
or her business such books and accounting records as are in accord with
generally accepted accounting practices.

2. Each licensee shall maintain a separate
written or electronic record or ledger card for the account of each customer
and shall set forth separately the amount of cash advance and the total amount
of interest and charges, but such a record may set forth precomputed declining
balances based on the scheduled payments, without a separation of principal and
charges.

3. Each licensee shall preserve all such
books and accounting records for at least 2 years after making the final entry
therein.

4. Each licensee who operates outside this
State an office or other place of business that is licensed pursuant to
provisions of this chapter shall:

(a) Make available at a location within this
State the books, accounts, papers, records and files of the office or place of
business located outside this State to the Commissioner or a representative of
the Commissioner; or

(b) Pay the reasonable expenses for travel, meals
and lodging of the Commissioner or a representative of the Commissioner
incurred during any investigation or examination made at the office or place of
business located outside this State.

Ê The licensee
must be allowed to choose between the provisions of paragraph (a) or (b) in
complying with this subsection.

5. As used in this section, “amount of
cash advance” means the amount of cash or its equivalent actually received by a
customer or paid out at the customer’s direction or in his or her behalf.

NRS 604A.710Investigation of businesses; examination of books and records by
Commissioner.

1. For the purpose of discovering
violations of this chapter or securing information lawfully required under this
chapter, the Commissioner or his or her duly authorized representatives may at
any time investigate the business and examine the books, accounts, papers and
records used therein of:

(a) Any licensee;

(b) Any other person engaged in the business of
making loans or participating in such business as principal, agent, broker or
otherwise;

(c) Any registered agent who represents a
licensee or any other person engaged in the business of making loans; and

(d) Any person who the Commissioner has
reasonable cause to believe is violating or is about to violate any provision
of this chapter, whether or not the person claims to be within the authority or
beyond the scope of this chapter.

2. For the purpose of examination, the
Commissioner or his or her authorized representatives shall have and be given
free access to the offices and places of business, and the files, safes and
vaults of such persons.

3. The investigation of a registered agent
pursuant to subsection 1, including, without limitation, any books, accounts,
papers and records used therein, must be kept confidential except to the extent
necessary to enforce any provision of this chapter.

4. For the purposes of this section, any
person who advertises for, solicits or holds himself or herself out as willing
to make any deferred deposit loan, high-interest loan or title loan is presumed
to be engaged in the business of making loans.

5. This section does not entitle the
Commissioner or his or her authorized representatives to investigate the
business or examine the books, accounts, papers and records of any attorney who
is not a person described in paragraph (a), (b) or (d) of subsection 1, other
than examination of those books, accounts, papers and records maintained by
such attorney in his or her capacity as a registered agent, and then only to
the extent such books, accounts, papers and records are not subject to any
privilege in NRS 49.035 to 49.115, inclusive.

1. At least once each year, the
Commissioner or his or her authorized representatives shall make an examination
of the place of business of each licensee and of the loans, transactions,
books, accounts, papers and records of the licensee so far as they pertain to
the business for which he or she is licensed pursuant to the provisions of this
chapter.

2. If, after auditing one or more branch
locations of the licensee, the Commissioner or his or her authorized
representatives conclude that the loans, disclosures, loan practices, computer
processes, filing systems and records are identical at each branch location,
the Commissioner may make an examination of only those branch locations he or
she deems necessary.

1. The Commissioner shall charge and
collect from each licensee a fee of not more than $80 per hour for any
supervision, audit, examination, investigation or hearing conducted pursuant to
this chapter or any regulations adopted pursuant thereto.

2. The Commissioner shall bill each
licensee upon the completion of the activity for the fee required pursuant to
subsection 1. The licensee shall pay the fee within 30 days after the date the
bill is received. Except as otherwise provided in this subsection, any payment
received after the date due must include a penalty of 10 percent of the fee
plus an additional 1 percent of the fee for each month, or portion of a month,
that the fee is not paid. The Commissioner may waive the penalty for good
cause.

3. The failure of a licensee to pay the
fee required pursuant to subsection 1 as provided in this section constitutes
grounds for revocation of the license of the licensee.

4. The Commissioner shall adopt
regulations establishing the amount of the fee required pursuant to this
section.

1. If a licensee fails to submit any
report required pursuant to this chapter or any regulation adopted pursuant
thereto within the prescribed period, the Commissioner may impose and collect a
fee of not more than $10 for each day the report is overdue.

2. The Commissioner shall adopt
regulations establishing the amount of the fee that may be imposed pursuant to
this section.

NRS 604A.800Temporary suspension of license: Conditions; notice; hearing;
terms of suspension.If the
Commissioner finds that probable cause for revocation of any license exists and
that enforcement of the provisions of this chapter requires immediate
suspension of a license pending investigation, the Commissioner may, upon 5
days’ written notice and a hearing, enter an order suspending a license for a
period not exceeding 20 days, pending a hearing upon the revocation.

NRS 604A.810Order to desist and refrain; action to enjoin violation;
appointment of receiver.

1. Whenever the Commissioner has
reasonable cause to believe that any person is violating or is threatening to
or intends to violate any provision of this chapter, the Commissioner may, in
addition to all actions provided for in this chapter and without prejudice
thereto, enter an order requiring the person to desist or to refrain from such
violation.

2. The Attorney General or the
Commissioner may bring an action to enjoin a person from engaging in or
continuing a violation or from doing any act or acts in furtherance thereof. In
any such action, an order or judgment may be entered awarding a preliminary or
final injunction as may be deemed proper.

3. In addition to all other means provided
by law for the enforcement of a restraining order or injunction, the court in
which an action is brought may impound, and appoint a receiver for, the
property and business of the defendant, including books, papers, documents and
records pertaining thereto, or so much thereof as the court may deem reasonably
necessary to prevent violations of this chapter through or by means of the use
of property and business, whether such books, papers, documents and records are
in the possession of the defendant, a registered agent acting on behalf of the
defendant or any other person. A receiver, when appointed and qualified, has
such powers and duties as to custody, collection, administration, winding up
and liquidation of such property and business as may from time to time be
conferred upon the receiver by the court.

1. If the Commissioner has reason to
believe that grounds for revocation or suspension of a license exist, the
Commissioner shall give 20 days’ written notice to the licensee stating the
contemplated action and, in general, the grounds therefor and set a date for a
hearing.

2. At the conclusion of a hearing, the
Commissioner shall:

(a) Enter a written order either dismissing the
charges, revoking the license or suspending the license for a period of not
more than 60 days, which period must include any prior temporary suspension.
The Commissioner shall send a copy of the order to the licensee by registered
or certified mail.

(b) Impose upon the licensee an administrative
fine of not more than $10,000 for each violation by the licensee of any
provision of this chapter or any regulation adopted pursuant thereto.

(c) If a fine is imposed pursuant to this
section, enter such order as is necessary to recover the costs of the
proceeding, including investigative costs and attorney’s fees of the
Commissioner.

3. The grounds for revocation or
suspension of a license are that:

(a) The licensee has failed to pay the annual
license fee;

(b) The licensee, either knowingly or without any
exercise of due care to prevent it, has violated any provision of this chapter
or any lawful regulation adopted pursuant thereto;

(c) The licensee has failed to pay a tax as
required pursuant to the provisions of chapter
363A of NRS;

(d) Any fact or condition exists which would have
justified the Commissioner in denying the licensee’s original application for a
license pursuant to the provisions of this chapter; or

(e) The licensee:

(1) Failed to open an office for the
conduct of the business authorized by his or her license within 180 days after
the date the license was issued; or

(2) Has failed to remain open for the
conduct of the business for a period of 180 days without good cause therefor.

4. Any revocation or suspension applies
only to the license granted to a person for the particular office for which
grounds for revocation or suspension exist.

5. An order suspending or revoking a
license becomes effective 5 days after being entered unless the order specifies
otherwise or a stay is granted.

NRS 604A.830Additional grounds for disciplinary action.In addition to any other lawful reasons, the
Commissioner may suspend or revoke a license if the licensee has engaged in any
act that would be grounds for denying a license pursuant to this chapter.

NRS 604A.840Surrender of license by licensee; effect of surrender.A licensee may surrender any license issued
pursuant to the provisions of this chapter by delivering it to the Commissioner
with written notice of its surrender, but a surrender does not affect the
licensee’s civil or criminal liability for acts committed prior thereto.

NRS 604A.850Preexisting contracts unaffected by revocation, suspension,
expiration or surrender of license.A
revocation, suspension, expiration or surrender of any license does not impair
or affect the obligation of any preexisting lawful loan agreement between the
licensee and any customer. Such a loan agreement and all lawful charges thereon
may be collected by the licensee, its successors or assigns.

1. Except as otherwise provided in this
section, if a licensee willfully:

(a) Enters into a loan agreement for an amount of
interest or any other charge or fee that violates the provisions of this
chapter or any regulation adopted pursuant thereto;

(b) Demands, collects or receives an amount of
interest or any other charge or fee that violates the provisions of this
chapter or any regulation adopted pursuant thereto; or

(c) Commits any other act or omission that
violates the provisions of this chapter or any regulation adopted pursuant
thereto,

Ê the loan is
void and the licensee is not entitled to collect, receive or retain any
principal, interest or other charges or fees with respect to the loan.

2. The provisions of this section do not
apply if:

(a) A licensee shows by a preponderance of the
evidence that the violation was not intentional and resulted from a bona fide
error of computation, notwithstanding the maintenance of procedures reasonably
adapted to avoid that error; and

(b) Within 60 days after discovering the error,
the licensee notifies the customer of the error and makes whatever adjustments
in the account are necessary to correct the error.

NRS 604A.910Administrative fines for unlicensed activity.In addition to any other remedy or penalty,
the Commissioner may impose an administrative fine of not more than $50,000
upon a person who, without a license, conducts any business or activity for
which a license is required pursuant to the provisions of this chapter.

NRS 604A.920Other remedies for unlicensed activity.If
a person operates a check-cashing service, deferred deposit loan service,
high-interest loan service or title loan service without obtaining a license
pursuant to this chapter:

1. Any contracts entered into by that
person for the cashing of a check or for a deferred deposit loan, high-interest
loan or title loan are voidable by the other party to the contract; and

2. In addition to any other remedy or
penalty, the other party to the contract may bring a civil action against the
person pursuant to NRS 604A.930.

1. Subject to the affirmative defense set
forth in subsection 3, in addition to any other remedy or penalty, if a person
violates any provision of NRS 604A.400, 604A.410 to 604A.500,
inclusive, 604A.610, 604A.615,
604A.650 or 604A.655
or any regulation adopted pursuant thereto, the customer may bring a civil
action against the person for:

(a) Actual and consequential damages;

(b) Punitive damages, which are subject to the
provisions of NRS 42.005;

(c) Reasonable attorney’s fees and costs; and

(d) Any other legal or equitable relief that the
court deems appropriate.

2. Subject to the affirmative defense set
forth in subsection 3, in addition to any other remedy or penalty, the customer
may bring a civil action against a person pursuant to subsection 1 to recover
an additional amount, as statutory damages, which is equal to $1,000 for each
violation if the person knowingly:

(a) Operates a check-cashing service, deferred
deposit loan service, high-interest loan service or title loan service without
a license, in violation of NRS 604A.400;

(b) Fails to include in a loan agreement a
disclosure of the right of the customer to rescind the loan, in violation of NRS 604A.410;

(d) Accepts collateral or security for a deferred
deposit loan, in violation of NRS 604A.435, except
that a check or written authorization for an electronic transfer of money shall
not be deemed to be collateral or security for a deferred deposit loan;

(e) Uses or threatens to use the criminal process
in this State or any other state to collect on a loan made to the customer, in
violation of NRS 604A.440;

(f) Includes in any written agreement a promise
by the customer to hold the person harmless, a confession of judgment by the
customer or an assignment or order for the payment of wages or other
compensation due the customer, in violation of NRS
604A.440;

3. A person may not be held liable in any
civil action brought pursuant to this section if the person proves, by a
preponderance of evidence, that the violation:

(a) Was not intentional;

(b) Was technical in nature; and

(c) Resulted from a bona fide error,
notwithstanding the maintenance of procedures reasonably adapted to avoid any
such error.

4. For the purposes of subsection 3, a
bona fide error includes, without limitation, clerical errors, calculation
errors, computer malfunction and programming errors and printing errors, except
that an error of legal judgment with respect to the person’s obligations under
this chapter is not a bona fide error.

NRS 604A.940Exercise of jurisdiction over party to civil action; service of
summons to confer jurisdiction.

1. A court of this State may exercise
jurisdiction over a party to a civil action arising under the provisions of
this chapter on any basis not inconsistent with the Constitution of the State
of Nevada or the Constitution of the United States.

2. Personal service of summons upon a
party outside this State is sufficient to confer upon a court of this State
jurisdiction over the party so served if the service is made by delivering a
copy of the summons, together with a copy of the complaint, to the party served
in the manner provided by statute or rule of court for service upon a person of
like kind within this State.

3. In all cases of such service, the
defendant has 40 days, exclusive of the day of service, within which to answer
or plead.

4. This section provides an additional
manner of serving process and does not invalidate any other service.